Net Income is the profit your business earns after expenses and allowable deductions. It represents the amount of money remaining after all operating expenses, Taxes, interest, and preferred stock dividends have been deducted from a company's total revenue.
The formula for net income is as follows:
Total Revenue - Total Expenses = Net Income
|Costs of Goods Sold||5,00,000|
|Total Operating Cost||3,70,000|
By using the formula we can see that:
Net Income= 10,00,000 - 5,00,000 - 3,70,000 - 50,000 - 50,000 = INR 30,000